Newspaper Page Text
Thursday, January 12, 1950
GROSS NATIONAL PRODUCT GOVERNMENT NET EXPORT----- BUSINESS CONSUMERS Washington.—Workers look for ward to 1950 with much concern over the increase in unemployment which seems sure to develop, the /^^AFL Monthly Survey believes. Prospects for the first 6 months are fairly bright, but a slackening of industrial activity at least equal to that of last summer seems like ly in the second half year. To reach our national goal of maintaining “full” production and employment, demand for industry’s products must increase enough each year to create jobs for all new workers joining the labor force and for those laid off by labor-saving devices. In 1947 and 1948 (and dur ing the war) demand was ample to create these jobs and we had “full employment.” Gross national pro duct in 1947 and 1948 (shown on the chart) was the sum total of all products and services turned out by all industries at maximum employ ment levels. But in 1949, for the first time in 8 years, demand fell short, production dropped below “full employment” levels and un employment rose by 1,300,000 (year’s average). The chart shows the gap (dotted space) or shortage in demand in 1949, and the even larger gap in prospective demand for 1950. This gap means unem ployment. Prospects are bright for the first half year. Total business volume should about equal 1949 through May or June of 1950. But this will not be enough to expand produc tion and create jobs for new work ers, so unemployment in the first half year will edge upward, ex- IT WILL BE A bigger dollar LATER ON That dollar you thoughtlessly pull from your billfold to spend now will be a bigger dollar in the future. Its spending power can be almost doubled when the pressure of inflation eases. Now —more than ever before—is the time to save your money. Put it where it will do the greatest good—come in today and start a savings account with us. SAVE now at Firs# National Member FDIC East Liverpool’s Oldest Bank Phone 914 for happier SPENDING later AFL Says Workers Need Substantial •Raise in 1950 to Keep Full Employment WILL DEMAND FOR GOODS SUPP0R1 FULL EMPLOYMENT IN I9S0? MMES INtltUWS OESOILASS y.v.*.*.v.v.*.*.v/ I w M- BWBWBgff 1943 1947 /949 A---------------------------------------------------------------------------- 'ceeding 1949 by perhaps a million, A down trend is likely in the sec ond half of 1950. business decline a challenge to labor to find a an increase in The prospective after mid-1950 is management and solution without government spending. It will test the ability of our free enterprise system to maintain “full” produc tion and employment. Our economy is strong and healthy. Reserves of buying power are large, in person al savings, and undistributed pro fits of corporations business work ing capital is strong. We face in 1950 not a depression, but another business readjustment which need not be disruptive if we take the right steps to meet it. Several constructive developments are possible. A gradual price de cline will release more buying power continued spending by bus iness to improve equipment would maintain employment and increase productivity reduction in the many taxes paid by consumers would en able them to buy more of the dur able goods they want and need. We do not attempt here to list other proposals. A constructive program could only be worked out by com petent representatives of manage ment, labor and other groups. We do however make the follow ing suggestion to our own member ship: A large increase in workers’ buying will be essential in 1950. If every worker in the U. S. could re ceive a 10-cent wage increase, some $8,000,000,000 would be add ed to consumer buying power, near ly all of which would immediately be spent for living necessities. This would be enough to reverse the prospective downward trend of business and start a rise. But with lower profits in prospect for 1950, many companies would hesitate to give such increases unless earned by reducing costs. Most American managements have never seriously tried o co operate with unions by submitting cost data and assuring union mem bers of a fair share in the saving that could be made by joint effort to reduce costs. Some amazing re sults could be accomplished if workers were given week by week cost records, so they could see the results of their efforts, ami man agement agreed to share the sav ings with them, determining the just wage increase by collective bargaining negotiations. At least a goal could be set of 7, 10 or 15 cents more in wages through cost reduction. If manage ment recognized the need for an immediate increase in workers’ buying power and agreed to such a program of cooperative effort to raise wages, the battle against Furniture-Stoves Bedding-Curtains Drapery—Rugs—Carpets Paint-Appliances Dinner & Cooking Ware Seven Floors of Quality Furniture and All Furnishing® To Make a House a Comfortable Home Established 1880 East Liverpool, Ohio Convenient Terms CROOK’S “THE BEST PLACE TO BUY AFTER ALL" .. .... video Antennas PMOUCT OF HU CMMAYMINT GAP tH.O ACTUAL^ 0 CROSS & NATIONAL PRODUCT 19SO FORtCAW business recession .would be well\on the way to victory. It is clear of course that wages must be raised without causing a general increase in living costs. Businessmen Back Truman’s Spending Ask Tax Cut Washington (LPA)—The Com mittee for Economic Development (CED), composed of middle of the road businessmen, has proposed a spending and tax program very similar to President Truman’s, and in some respects more liberal than the President’s. The CED program, made public in advance of the President’s, pro posed spending almost as much as President Truman on welfare acti vities and defended the economies effected by the Chief Executive. It also recommended plugging some of the biggest loopholes in the structure, plus a $2.25 billion cut. tax tax the Based on months of study, CED proposal on taxes is sure to draw close attention from the Pre sident’s advisors now shaping his tax recommendations to Congress. It also provides strong support for his budget recommendations, which are under bitter attack from Re publicans in Congress. The report was approved by the CED’s Research and Policy Com mittee headed by Marion B. Fol som, of Eastman Kodak, and in cluding such big businessmen as Beardsley Rumi, of Macy’s John D. Bigger, of Libbey-Okens Glass S. Sloan Colt, of Bankers’ Trust Clarence Francis, of General Foods Gardner Cowles, of the Cowles Publishing family Eric Johnston, former president of the Chamber of Commerce, and many others of the same caliber. It was drafted by the CED’s Tax and Expenditure Subcommittee headed by J. Cameron Thomson, of Northwest Bancorporation S. Bay ard Colgate, of Colgate-Palmolive Peet Co. Philip L. Graham, of the Washington Post, and others. The report was based on the CED’s theory that a budget and tax policy should be established which would balance the budget with high employment, but not in times of depression. The budget it proposed would just about balance under present conditions. With an upturn in business to lower unem ployment to 2'4: million, which is in line with Truman’s program, there would be enough of a surplus to pay $3,CCO,000,000 on the public debt. The CED’s budget proposed cuts in spending of about $6.6 billion— but most of these cuts were al ready provided in the Truman bud get because of improving condi tions at home and abroad. None ofl the cuts were aimed at welfare activities such as the Republicans in Congress are attacking. Most of these were specifically defended. On the tax side, the CED recom mended a number of reforms in cluding the taxation of future is sues of state and local securities which now provide a tremendous refuge from taxation for the rich and constitute one of the major loop-holes in the tax laws. Other tax proposals would: 1. Permit businessmen to. bal ance losses in one year against pro fits in another. 2. Repeal about $1 billion of the excise or sales taxes on such things as travel, telephones, luggage, movies, etc. 3. Eliminate almost half of the so-called “double taxation” of corp orate dividends by withholding the first bracket tax on corporate di vidends, as current tax payments are now deducted by all employers from pay envelopes anti crediting this amount on the corporation tax. This, in effect, would cut corporate taxes 2 to 20 per cent, but encour age the corporations to distribute more of their profits to stockhold- i THE POTTERS HERALD, EAST LIVERPOOL, OHIO J?»riy installed Can Cause Tragedy The Ohio Power Company today warned against improperly install ed television antennas which might blow or falb on adjacent power lines. Mr. R. T. Couch, of the com pany’s office here, said that a tra gedy may occur if proper judgment is not used in selecting the location for an antenna, or if proper pre cautions. are not taken to prevent its falling during or after, instal lation. Power lines are built to comply with the National Electric Safety Code which specifies the minimum clearance between i h-voltage lines and other structures. How ever, the length of the average tele vision antenna lead may be suffi cient, when it becomes displaced, to reach conductors adjacent to homes. and Some outdoor television short-wave antennas are of construction that they may lapse during storms. Unless are substantially constructed, ported and guyed where necessary so they can withstand the pressure of high winds or sleet, they may topple and fall, particularly if the supports corrode. such col they sup One of the best ways to assure safe installations, explains Mr. Couch, is to have the work done by a reliable mechanic who under stands and can apply the necessary precautions (1) an antenna should be installed in a location, where, if it does fall, it can not contact a power line (2) the antenna should have sturdy construction (3) it is very important that the antenna be highly resistant to rusting or cor rosion (4) it should be firmly fast ened to a strong-enough portion of the building to support it during high winds, snow, sleet, or icing conditions. Irregularities In Michigan Election Aired At Meeting Washington (LPA)—Charge® of “grave irregularities” that “amount to fraud under the law” were de tailed to a House committee here by spokesmen for George D. Stev ens, labor-backed Democratic cand idate for Congress from Flint, Mich. Stevens in demanding a re count of the ballots in the 1948 election, when he apparently lost by 784 votes out of 146,000 cast. Pro-union members of Congress point out that William R. Blackney, the Republican who was seated in the close election has voted wrong on all except one of the key votes recorded by Labor’s League for Political Education. Committee Chairman Burr Harr ison (D, Va.) has been charged with obstructing Stevens’ efforts to obtain a recount. Although Stev ens filed a contest right after the election, the House investigation has proceeded at a snail’s pace. Stevens, a youthful attorney who is secretary of Flint’s school board, told LPA that if he Idses out in a vote promised him Jan. 10 in the House Administration Committee, or on the floor of the House when it reaches that body, he’ll keep right on fighting and will run against Blackney again in Novem ber of this year. Stevens’ supporters told the committee that even though they hadn’t been able to get a recount, they had instance after instance of errors such as tally clerks falling asleep, and “corrections” amount ing to as many as 433 votes made by the Tennessee County board of canvassers’ clerk. The issue, said Stanley R. Beat tie, who spoke for Stevens, “is the disenfranchisement of 72,0C0 vot ers. Recounts make for the purity of elections. We are asking that the wrong done by the state court be removed and that the original evidence, the best evidence, be looked into to whether Stevens lost by 784 votes.” Garment Workers* Pay Upped Fall River, Mass. (1LNS). A new minimum wage of 80 cents an hour, a 10-cent boost went into ef fect Jah. 1 for some 4,COO garment workers. Agreement on the in crease was reached at a conference of the International Ladies’ Gar ment Workers’ Union, and the Needl^ Trades Employers Associa tion, representing 27 Fall River plants. A seventh paid holiday Columbus Day, was added to those already enjoyed, with time-and-a half for holidays worked. ers. 4. Help small businessmen by easing taxes on profits between $25,000 and $50,000. On the spending side the busi nessmen said, “The President, wjth the assistance of the Budget Bur eau and the cooperation of the de partments, has made important contributions to expenditure con trol, especially in the fields of na tional defense, public works and foreign aid.” It paid no such com pliment to Congress, where all talk of economy centers. pry /A Supreme Court To Decide Legality Of Hiring Hall Sup Washington (LPA) The reme Court will decide whether the union hiring hall, hard core of sea going unionism, violates the Taft Hartley ban on the closed shop. If the court says “yes”, it may pre cipitate a general waterfront strike. case is an appeal by the Maritime Union from an order which was sustained The Nat’l NLRB by a US Circuit Court of Appeals. The board directed the union to drop the hiring hall from its con tract demands in negotiations with Great Lakes shipowners two years ago. The NMU hiring hall is in effect in both Great Lakes and deepwater ports. If the Supreme Court rules the hiring hall illegal or refuses to review the circuit court’s decision, the union’s con tracts must be renegotiated. But a general strike of all seagoing unions, CIO and AFL alike may happen first. The seamen’s unions have asked for special legislation validating their hiring halls, and a bill that would have legalized them was in troduced into Congress last year by Sen. Magnuson,(D, Wash.) and Rep. Lesinski (D, Mich.). A spec ial subcommittee of the Senate Labor Committee has been delving into the hiring hall question, and a number of Congressmen have visited halls of the Seafarers Int’l Union-AFL to see how they work. The maritime hiring hall with rotary shipping is a system where by the union dispatches its mem bers to jobs in the order in which they register for work. A man is permitted to refuse a prescribed number of jobs before being drop ped to the bottom of the list. Un der certain circumstances a ship owner also can refuse to take a man. The NMU’s attorney told the Supreme Court he thought the labor board and the circuit court called the hiring hall “admittedly lawful on its face.” Congress Wheels Move On Housing Cooperative Bill Washington (LPA) That the Administration means business in pushing the co-op middle income housing bill high up on its agenda is emphasized by the speed with which both Senate and House lead ers are acting. Only two days after President Truman made his request, Chair man Burnet Maybank (D, SC) said Senate Banking Committee hear ings will start Jan. 11, continuing for about a week, with a quick re port to the floor of the Senate ex pected by the end of the month. At the same time, Chairmar Brent Spence (D, Ky.) of the House Banking Committee introduced the co-op housing bill, to aid families in the $2500 to $4CC0 income range, on the House side. His bill, Maybank told the Sen ate, would make it possible to carry out this program “through the in vestment of private capital, on a long-term basis and at a low rate of interest, in housing projects un dertaken by cooperatives.” Technical advice and organizing assistance will be given by the fed eral government to groups under taking non-profit co-op housing projects. Preliminary advances of funds for the work preliminary to construction, like architects’ draw ings and planning, would be made by the government. A Nat’l Mort gage Corporation for Housing Cooperatives would be organized, whose $100,000,000 stock would be initially subscribed by the govern ment, and later replaced with pri vate capital through stock pur chases of borrowing cooperatives. Additional private capital would be obtained by the Corporation through s^le of federally under written debentures to private in vestors. The Corporation would be authorized to make 50-year loans at three percent interest for con struction of middle-income co-op 'housing. ,r MW* CONGRATS—Labor got two Ifriends and one enemy in the Senate this week as three new Senators v re sworn in. Vice-President Albhn Barkley n s hands with th- newm is who are (left to right): Hubert H. Lehman (D-Liberal, ND WilLum Lu.iun (D, Conn.) aixu Hux.y Lux by (R, Kans.) Comment On World Events That jurisdiction in the Soviet Union is subjected to political con trol should not be unknown in the free world. To what an extent, however, it is merely a farce and a pretense was disclosed by Pravda itself, last Oct. 28: “The case of the rural corres pondent, Piotr Gura was discussed at the bureau of the committee of the Communist party of Ukraine for the Kameniets-Podolsk region. The bureau of the regional com mittee noted that Kashchuk, r-c ional prosecutor of the Gvarde.-k region, though well aware that the material against P. Gura is com piled tendenciously, not only did not drop the case and turn it against the slanderers but, on the contrary, threatened P. Gura and rejected his lawful demands. “The bureau of the regional com mittee of the Communist party of Ukraine, Comrade Privalov, had the opportunity to interfere active ly and to stop the inquiry to P. Gura case until all the circum stances were ascertained, but has, nevertheless, not done so. “At the decision of the regional committee prosecutor of the Gvar deisk region Kashchuk has been removed from his post and exclud ed from membership in the Com munist party of the Ukraine. The investigative organs have been in structed to indict Kashchuk for his criminal offense.” Leaving aside the problem who was the scoundrel, Prosecutor Kashchuk or Pravda’s correspond ent, P. Gura, the following most important conclusions must be drawn from the above article: 1. In the Soviet Union the sec retaries of Communist party com mittees have the right to stop in quiries started by ppblic prosecu tors 2. Party committees have the right at their discretion to dis charge public prosecutors and, most probably, also the magis trates 3. Party committees and bureaus have the right to instruct investi gative organs to indict even the servants of justice not to speak of ordinary mortals. Furthermore, it should be, noted that the party organization in ques tion was by no means the Polit bureau or any other high policy making agency. It was a subordin ate local committee playing ducks and drakes with jurisdiction either at its own sweet will or on direc tives from above. Neither is it cre dible that any “reason of state” was involved. The incident is as striking a proof as may be desired that not only does not justice exist in the USSR but that even no trouble taken to disguise this lack. Hew York Paper Folds Ho Notice Given Employees New York (LPA)—The NY Sun, founded in 1833, ed A’i and was sold to the Wwld-T«.e gram Jan. 4, without notice to any of its 1100 full-time and 75 part time employes. The owners blamed hteu costs and s pecially the “de nrar ds of the unions.” The Sun had lost 20,000 circulation in the year past, and its advertising revenue had also drorrrd. Thomas W. De wart, publis .. r, said “various unions have forced, and are con tinuing to force, higher wages, un til in the newspaper business as a whole these have risen beyond rea son.” Dewart said wages on the Sun had risen 80.1 per cent in ten years (newsprint has risen from $48 to $100 a ton, more than 100 per cent). “Union demands have become too great for us to meet in the face of serious losses of in come,” Dewart said. The unions quickly repJ-’ed. The American Newspaper Gu..d point ed out that the Sun had not in creased pay in any department during 1949, and was not faced with any increases in 1950. Head of the Sun Editorial Employes Ass’n, independent, pointed out that pay was not out of line with city-wide wage scales. Other unions pointed out that the Sun folded be cause it lost circulation and adver tising revenue through its ultra conservative policy. The latest pie was the gov ernment’s ar ist suit against the AAP. The A&P side of the controversy had been widely pub lished in the commercial press. The government’s side had appeared only in labor press, using mostly material prepared by Labor Press Ass’n. The Justice Dep’t, which does not like to try its cases in Jhe newspapers, finally broke preced ent and issued a statement. Most papers failed to carry the state ment, including the Sun. Among the Sun’s columnists was David Lawrence of Washington, the darling of the super-conserva tives. Lawrence wrote a column giving the government’s side of the story. The Surf did not use that column. It was the first time in 20 years that Lawrence’s column did not appear in the Sun. Two Rail Unions Conducting Strike Vote For 250,000 Chicago (LPA) Ballots are rolling in to headquarters of the Brotherhood of Railroad Trainmen and Order of Railway Conductors in a current referendum among their quarter million members on whether to strike the “Iron Horse.” The results will be made known late in January, and fixing a strike date will then be considered. Meantime, the National (Railway) Mediation Board will begin efforts Jan. 16 to mediate the dispute in an effort to avert a possible ulti mate stoppage. is Dewey Assails Health Insurance Albany, N. Y. (LPA)—If opposi tion to public health insurance is to be the core of Republican stra tegy next fall Gov. Thomas E. Dewey of New York is sticking close to the party line. Dewey, a two-time loser in the race for the Presidency, devoted a substantial portion of his 12,0C0 word address opening the State Legislature to attacks upon com pulsory health insurance programs and declared New York had achiev ed the highest health standards in the nation without “socialized medi cine.” But he managed to walk both sidjes of the street by boast ing that last year a million people in the state had received free medical treatment costing $90,000, 000 in State, local and federal funds. He also called for renewal of state rent control laws. The speech drew immediate fire from Dewey’s opponents who spoke bitterly of the governor’s omiss ions. They pointed especially to the fact that he said nothing about education or school construction. Democratic leaders promised ex panded state legislation in the health field. Buy Union-Made goods from others as you would have them pay Union wages unto you! The tvm unions' are demanding improvements in working condi tions, including a 40-hour week at 48-hour’s pay for crafts in yard service on the nation’s railroads. These demands would “modernize antiquated working rules and give our membership a fairer share of their increased productivity,” it was explained by “Trainmen News,” weekly paper of the BRT. Railroad managements countered with a series of rules proposals which, the unions said, would virtu ally wipe out many of the gains won through the years after bitter struggles. Efforts to secure a settlement during many months of direct ne gotiations with representatives of the railroads ended in a deadlock here, and the strike referendum followed. “Trainmen News” charg ed the* railroads “came to the con ference table only to stall, not to bargain in good faith.” The paper added: “The unions have not been granted a major rules change in 30 years. In fact, no wage raise or rule improvement has ever been voluntarily given by the railroads.” Demand the Union LabeL PAGE FIVS 1AM Chief Joins. Group Opposing War Plant Moves Washington (LPA)—Al Hayes, pn ilnt of the International As sociation of Machinist®, ha® ac cepted a vice-presidency of the newly-formed All America Defense Ass’n. The group consists of union officials, business men and civic leaders who are concerned over the rnnsequences of wholesale shifting of defence plants from coastal to inland areas. The men in the group have been alarmed by the high inded way the generals and ad mirals order these changes, and fear the military planners may wreak havoc to the economy with out strei■’r rung the nation’s de tense estabiioifirnnt in this age of long-range bcz bers uuJ guided missiles. The IAM executive council call ed for a Congressional probe of the transfers in December, after the IAM became a/.ure of the implica tions of war plant dispersal when the Air Force tried to move the Boeing aircraft factory from Seat tle to Wichita, Kan. Hayes explained the new group*' is non-partisan, non-political, and not anti-military. The group has been formed for the expies pur pose of creating m^ro public in terest in mil:*ary dec.-ions dis persal of war plants. Hayes said the “organization has no idea that it is more qualified than thr- mili tary to make military dexxiions”, but added that the military must not make decisions which “com pletely upset our industrial sc or our general economy” wbr.'xul consulting experts in non-mi kary matters. He called on Congress to look into plant dispersal, and also into our defense systems in Alaska, on the coasts and on the Great Lakes. The All America Defense Ass’n will not be formally launched until Jan. 13 when a rally will be held at the Hotel Statler here. In addition to Hayes, one of the vice-presidents will be Murray Lincoln, Ohio Farm P'eau h- ad, who will have solid luuor bacuuxg if he decides to run for the Senate against Bob Taft. labor Monopoly’ Scare Answered By Union Paper Milwaukee (LPA)—The “labor monopoly” scare being spread by big busing- as a cloak for potting more sha kies on labor is answer ed in “Report To Locals”, issued by the Building Service Employes’ International U n i o n-AFL. The bogey has been revived, says the publication, because the Taft-Hart ley act is not digging a pit under unionism fast enough to suit re actionary employers, so they want the Sherman Anti-Trust act ap plied to “labor monopolies”. The union publication points out “the people who control a sugar, monopoly can sell or refuse to sell, can advance or lower the price, can destroy all or part of their stock in order to increase prices. The people who control a labor union can oc casionally—usually once a year when the contract expires—refuse to sell their labor.” But, the pub lication points out, the price of their labor is set through negotia tions, not by arbitrary action by the unions, and it is the power to arbitrarily control prices that is precisely the evil of monopoly. Further, in a monopoly, control comes from the top. In unions con trol comes from the members and the men they choose to lead them. “No union leader,” the publication points out, “can force thousands of members to leave their jobs and risk disaster if large numbers of those workers do not agree that a strike Ls necessary.” The purpose of a union “is not to conspire against the public, hut merely to combine the strengths of otherwise helpless individuals for the simple purpose of negotiating wages and working conditions.” If the drive to make unions sub ject to the anti-trust laws succeeds, says the publication, unions will be as ineffectual as in 1907, when a Connecticut jury decided the Dan bury hatters’ union was guilty of violating the Sherman act, and was fined $234,000. What was their crime They asked fellow unionists not to patronize a struck plant. Budd Workers Get Insurance Plan Philadelphia (LPA)— The Union Casualty Co. of New York has con tracted to provide company-paid health and accident insurance for 8500 employes of the Philadelphia unit of the Budd Co., the nation’s No. 1 independent makers of auto bodies. The insurance plan is part of an overall non-contributory pen sion and welfare plan obtained by Local 813 of the United Auto Workers, but employes themselves will pay costs of extra insurance for* their dependents. Union Cas ualty is headed by Alfred Baker Lewis, prominent spokesman for liberal and labor causes, and a number of its executives are form er trade union officers.